ENVIRO CREATORS FOUNDATION,MAHARASHTRA vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

Date of Hearing 28.07.2025 Date of Pronouncement 19.08.2025 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :- The present appeal is filed by the assessee Trust against the order passed by the Learned Commissioner of Income-tax (Exemptions), Mumbai [hereinafter referred to as “CIT(E)”] pertaining to order passed u/s. 80G of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for the Assessment Year [A.Y.] 2022-23. P a g e | 2 A.Y. 2022-23 Enviro Creators Foundation, Mumbai 2. The grounds of appeal are as under:-

1. The learned CIT(Exemption) has erred in rejecting appellant’s application for grant of approval U/S 80G(5).

2. Without prejudice, the learned CIT(Exemption) has erred in rejecting appellant’s application for grant of approval U/S 80G(5) without affording any opportunity.

3. Without prejudice, the learned CIT(Exemption) has erred in rejecting appellant’s application for grant of approval U/S 80G(5) without considering the amendments made in Sec.80G(5), 1st Proviso, clause (iv), wef 01.10.2024

4. Without prejudice, the learned CIT(Exemption) has erred in rejecting appellant’s application for grant of approval U/S 80G(5) without specifying as to which prescribed stipulated conditions were not fulfilled by the applicant.

5. Without prejudice, the learned CIT(Exemption) has erred in rejecting appellant’s application for grant of approval U/S 80G(5) without appreciating that the appellant’s registration u/s 12AA is in force.

3. Brief facts of the case are that the assessee Trust filed application in Form 10AB under clause (iv) (B) of 1st proviso to 80G(5) of the Act seeking approval under section 80G of the Act. However, ld.CIT(E) noticed that the trust was already incorporated on 16.02.2017. Further, the applicant had already claimed exemption by filing ITR-7 before applying for regularization of approval in Form 10AB (Previous Years).As per above mentioned provision of the Act, the applicant had to file Form 10AB u/s 80G(5)(iv)(B), if the applicant has not claimed exemption in previous years. Since the applicant has claimed exemption in previous years, therefore the application u/s 80G was not allowable. Further, the applicant was not fulfilling the stipulated conditions P a g e | 3 A.Y. 2022-23 Enviro Creators Foundation, Mumbai prescribed for filing application for approval in Form 10AB. In view of the above this application of the Trust was rejected.

4.1 Moreover, there is no whisper in the order of ld.CIT(E) about any query or show cause to the assessee about the ineligibility of assessee. Taking an action against the assessee without confronting it about the reasons for such rejection clearly amounts to violation of the principle of natural justice as the assessee was not afforded reasonable opportunities of being heard to submit its contentions in defence to the basis of rejection of application. Considering such facts and circumstances of the instant case, in order to provide a fair opportunity of being heard and to represent its case in a judicious manner, the matter needs to be revisited by the ld. CIT(E) after affording reasonable and adequate opportunity of being heard to the assessee. The matter is P a g e | 4 A.Y. 2022-23 Enviro Creators Foundation, Mumbai therefore, restored back to his file with a direction to pass an order in accordance with the law and after allowing adequate opportunity of hearing to the applicant Trust.